Why Broadcom Stock Is Absolutely Crushing It Today

Broadcom just jolted Wall Street awake—shares are screaming higher on explosive AI demand.

The chipmaker's latest earnings didn't just beat expectations—they vaporized them. Data center clients are scrambling for next-gen AI accelerators, and Broadcom's supplying the goods.

Revenue surged. Guidance blew past even the bulliest estimates. And the company's diving deeper into custom silicon deals—every tech giant wants their own AI chips now.

Wall Street's nodding along, upgrading price targets like there's no tomorrow. Because in AI, if you're not all-in, you're out. And Broadcom? They're not just in—they're leading the charge.

Sure, some analysts whisper about valuation. But when growth's this hot, who's counting? (Besides the shorts, anyway.)

Image source: Getty Images.

Broadcom is jumping after great news from Oracle

Oracle published results for the first quarter of its current fiscal year yesterday and actually delivered sales and earnings for the period that fell short of Wall Street's expectations. The performance misses were completely overshadowed by the company's guidance, however, and its share price is skyrocketing today.

Oracle anticipates that sales from its cloud infrastructure unit will surge 77% annually to reach $18 billion this fiscal year. Four years after that point, the company expects cloud infrastructure revenue will have reached $144 billion -- good for growth of 700% across the stretch. Making matters even better, The Wall Street Journal recently reported that Oracle had inked a data center deal with OpenAI worth up to $300 billion.

What's next for Broadcom?

Broadcom has already seen stellar sales and earnings gains connected to the rise of AI data centers, and Oracle's eye-popping guidance for cloud infrastructure sales suggests that the connectivity chip leader is poised to see strong demand trends continue. While investors have shown some recent hesitance when it comes to AI stocks with highly growth dependent valuations, Oracle's latest guidance suggests that AI infrastructure spending could still be in the early innings of a massive growth trend.